How does the Hawaii state solar tax credit work?

How does the Hawaii state solar tax credit work?

Originally enacted in 1976, the Hawaii Energy Tax Credit allows individuals to claim an income tax credit of as much as 35% of the cost of equipment and installation of a residential photovoltaic (PV) system. The credit is capped at $5,000 per “5 kW system,” and multiple systems may be installed on one home.

Is solar energy worth it in Hawaii?

Are solar panels worth it in Hawaii? Yes. With the 26% federal tax credit in addition to the 35% state tax credit available, solar incentives in Hawaii are still going strong. Solar incentives are so high in Hawaii because the state does not produce its own natural gas itself, including gas, oil and coal.

Is there a tax credit for solar panels in 2020?

In December 2020, Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. (Systems installed before December 31, 2019 were eligible for a 30% tax credit.)

What is the 2021 tax credit for solar?

The federal Investment Tax Credit (ITC) At the federal level, you’ll qualify for the federal solar Investment Tax Credit (ITC). In 2021, the ITC will provide a 26% tax credit on your solar panel installation costs, provided that your taxable income is greater than the credit itself.

Is solar free in Hawaii?

In Hawaii, where the average system costs $14,685, most homeowners will be able to receive the full $5,000 benefit from this incentive. When combined with the federal solar tax credit for 26% of the system cost — or 22% in 2023 — this credit makes going solar quite affordable in Hawaii.

Can you claim solar tax credit twice?

How many times can you claim the solar tax credit? You can only claim the solar tax credit one time for your solar power installation. If you have any unused amount remaining on your tax credit that you are unable to claim in a single tax year, you may be able to carry over that tax credit value for up to five years.

Does solar make sense in Hawaii?

Hawaii is an ideal place for home solar in the United States. The high cost of electricity, lots of sunshine, a state tax credit, and the federal tax credit means that homeowners can get an excellent return on investment by installing residential solar panels in The Aloha State.

Can you sell solar in Hawaii?

Hawaii no longer has net metering for solar owners. Instead, HECO has switched to giving homeowners a choice.